Some math came out over the weekend that’s rather interesting. It’s been widely reported by the Nonpartisan Congressional Budget Office that the New, Big Beautiful Bill would increase our nation’s deficit by $2.4T over the next 10 years if passed in its current form.
But many have been waiting to see what the increase in revenues from tariffs would do in order to compensate for that loss in revenues. Numbers being reported by US News and Report say that the tariffs, if left in their current state, would bring in an additional $2.5T over the same 10 year period.
In other words, it would basically be a wash from the standpoint of the overall economy.
That’s not to say that there wouldn’t be significant winners and losers depending on your business’s individual circumstances. The One, Big Beautiful Tax Bill takes away certain tax cuts and adds others, while the tariffs would add expenses to everyone’s income statements.
Let me leave you with this…
In general, this means that no one would be able to operate their businesses in a normal fashion. If everything stays as it is today and the bill is passed in its current format, much would change in the next 12 months.
The prices you pay for raw materials would continue to change. Sooner or later you’re going to need to give your employees a raise as well so that they won’t get poached by your competitors.
And if the bill is passed as is, you might end up paying less in taxes. So what’s the ending balance at the end of the journal? Will this be better or worse for you?
Only time will tell.
One thing is certain. We’re all going to need to watch our financial statements like a hawk.
Changes to our margins will show up there first. And our responses to those changes in increasing our pricing structures will need to be swift in order to preserve this year.
It feels like I’m always preaching caution, but now is a different time. We’re not only concerned about the overall effects that these changes will bring to the economy and the stock market, but now we have other major concerns as well.
Systematic changes like this will radically benefit some industries while hurting others. If we’re going to stay ahead of this, we’re all going to need to be on top of our game.
And not just any game. We’re all going to need to be in the zone.
I’ll continue to report on this as the story progresses.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300
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